NJ Supreme Court Committee Issues Opinion on CPAs Providing BOI Services

By Jeffrey Kazerman, NJCPA Government Relations Vice President – July 10, 2024
NJ Supreme Court Committee Issues Opinion on CPAs Providing BOI Services

The New Jersey Society of CPAs submitted a request to the New Jersey Supreme Court's Committee on the Unauthorized Practice of Law to determine whether beneficial ownership information (BOI) reporting assistance provided by CPAs is considered the unauthorized practice of law (UPL) in New Jersey. On July 9, they issued an opinion.

In a nutshell, the committee wrote that while providing BOI services is the practice of law, it is not UPL to prepare filings if the filing is straightforward and not complex. However, the CPA is required to tell the client that it may be advisable to consult with a lawyer.

Key excerpts from the opinion:

“To respond to this inquiry, the Committee first determines whether providing guidance to clients and/or filing the reports on behalf of clients is, in fact, the practice of law. If the Committee decides that it is the practice of law, it must then determine whether it is in the public interest to permit nonlawyers to engage in the activity …”

“With regard to beneficial owner information reports under the Corporate Transparency Act, the Committee finds that the public needs protection, given the complexity of some matters and the significant civil and criminal penalties for noncompliance… Complex filings require a lawyer’s judgment, training, and expertise - the analysis may be tricky and the risk of penalties, if the analysis is faulty, is greater.”

“While the public needs protection in complex matters, however, most filings will be straightforward. For example, all matters where there is a single owner of a limited liability company will be simple — that single owner is the beneficial owner of the entity for purposes of the Act. In such cases, one does not need to be a lawyer to determine the necessary information to include in a beneficial owner information report.” 

“Given that most filings are likely to be straightforward, the Committee finds that a licensed CPA can engage in this conduct provided the CPA notifies the client that it may be advisable to consult with a lawyer. The Committee relies on the professionalism of CPAs to ensure that such licensees will recognize when a filing is more complex and it is in the client's interests for a lawyer to be retained in the matter.” 

“Corporations may file the forms on their own, but if they hire someone to do it on their behalf, it must be a lawyer or a CPA/Enrolled Agent. 

“Since the Act is new and circumstances may change, the Committee reserves the right to amend or supplement this response in the future.”
 

 Read the full letter here.


Jeffrey  Kaszerman

Jeffrey Kaszerman

Jeff Kaszerman is the vice president of government relations for New Jersey Society of CPAs. He works with the CEO and board of trustees to create and implement advocacy initiatives that protect and promote the interests of the CPA profession, the business community and the public.

More content by Jeffrey Kaszerman:

 

 

Related events

November 21, 2024Live Webcast
Featured
November 5, 2024Live Webcast
November 5, 2024Live Webcast
November 6, 2024Live Webcast
November 6, 2024Live Webcast
November 7, 2024Roseland
November 8, 2024Hackensack
November 11, 2024Webcast Replay
November 12, 2024Secaucus
November 12, 2024Live Webcast
November 12, 2024Roseland
November 12, 2024Webcast Replay
November 13, 2024Spring Lake
November 13, 2024Live Webcast
November 14, 2024Paramus
Bergen Chapter
Federal Taxation
November 14, 2024Live Webcast
November 19, 2024Paterson
Passaic County Chapter
HRAs and HSAs | BOI Reporting
November 20, 2024Live Webcast
November 20, 2024Live Webcast
November 21, 2024East Hanover
Essex Chapter
Annual Tax Seminar
November 21 - 22, 2024Live Webcast
November 21, 2024Live Webcast
November 23, 2024Edison
Middlesex/Somerset Chapter
Annual Tax Seminar
November 25, 2024Live Webcast
November 25, 2024Live Webcast
December 3, 2024Live Webcast
December 4, 2024Live Webcast
December 4, 2024Live Webcast
December 5, 2024Live Webcast
December 5, 2024Live Webcast
December 5, 2024Spring Lake
December 6, 2024Cherry Hill
Southwest Jersey Chapter
Annual Tax Seminar
December 6, 2024Live Webcast
December 9, 2024Live Webcast
December 10, 2024Paterson
Passaic County Chapter
Elder Law | Trusts
December 10, 2024Roseland
December 10, 2024Live Webcast
December 11, 2024Webcast Replay
December 11, 2024Roseland
December 12 - 13, 2024Live Webcast
December 13, 2024Live Webcast
December 13, 2024Live Webcast
December 13, 2024Live Webcast
December 17, 2024Live Webcast
December 17, 2024Live Webcast
December 17, 2024Webcast Replay
December 18, 2024Live Webcast
December 19, 2024Live Webcast
December 19, 2024Live Webcast
December 20, 2024Live Webcast
December 20, 2024Live Webcast
December 20, 2024Webcast Replay
December 20, 2024Live Webcast
December 23, 2024Live Webcast
January 4, 2025Neptune
Monmouth/Ocean Chapter
Tax Seminar
January 9, 2025Live Webcast
January 14, 2025Secaucus
January 15, 2025Paterson
January 16, 2025Paramus
Bergen Chapter
State Taxation
January 22, 2025Live Webcast
January 23, 2025Webcast Replay
January 23, 2025Live Webcast
January 31, 2025Webcast Replay
February 5, 2025Linwood
Atlantic/Cape May Chapter
Federal & State Tax Update
February 6, 2025Paramus
Bergen Chapter
Special Topics
February 6, 2025Haddonfield
Southwest Jersey Chapter
Technology Update
February 12, 2025Live Webcast
February 19, 2025Live Webcast
February 24, 2025Webcast Replay
March 19, 2025Live Webcast
April 16, 2025Live Webcast
April 22, 2025Clark
April 25, 2025Roseland
April 25, 2025Live Webcast
May 7, 2025Northfield
Atlantic/Cape May Chapter
Estate Planning
May 8, 2025Haddonfield
Southwest Jersey Chapter
Nonprofit Update
May 20, 2025E. Brunswick
Middlesex/Somerset Chapter
New Jersey Law and Ethics
May 21, 2025Live Webcast
June 3 - 6, 2025Atlantic City
June 25, 2025Live Webcast
August 18 - 20, 2025Atlantic City
October 22, 2025Live Webcast